Inflation to come down to 6 percent in next 3 to 4 months

Published: Monday, May 12, 2008, 14:06 [IST]

Subscribe to Oneindia News

New Delhi, May 12 : The Chairman of the Prime Minister's Economic Advisory Council, Prof. C Rangarajan said here on Monday that the country's inflation is expected to come down to 6 per cent from the present level of 7.61 per cent in next three to four months. "Inflation is likely to come down to 6 per cent in next three to four months. Thereafter it can come down to 5-5.5 per cent depending upon the monsoon and other sectors," Rangarajan told reporters on the sidelines of a conference.

The high international crude oil prices will also have an impact on the GDP growth rate. However, it will not derail the growth process, he added.

He further said, "In January, the council has revised the GDP growth estimates to 8-8.5 per cent for 2008-09. The Government's fiscal measures will also have some impact on the tax collection."

Despite several measures taken by the Government to control inflation, it rose to a 42-month high at 7.61 per cent for the week ended April 26 as against 7.57 per cent in the previous week.

Union Finance Minister P. Chidambaram on Friday said that inflation is more or less stable and described the marginal increase in the annual wholesale price inflation rate in late April as a major relief.

The rate of inflation has not moderated anywhere in the world due to the rise in the food and oil prices, Chidambaram added. He also said the Government would take more administrative steps if necessary to tame prices further. Pointing out that the Government has already taken several measures, Chidambaram said: "One must have faith that these steps will yield results."